Spoke with my CFMoto contact, seems indeed likely that KTM and CFMoto are involved in a ADV style bike together.
I can't make that much sense of the discussion though as the contact said that the bike is going to be pretty expensive circa 200K. It was
suggested that the bike will be primarily a KTM and lesser of the CFMoto element.
Perhaps (this is my supposition) most of the running gear will be KTM and a few of the more simple components will be sourced from CFMoto, perhaps the rolling stock arrives in PRC to CFMoto from the KTM factory and then put together with the rest of the bolt-ons at CFMoto in HZ. So there is co-operation and likely licensing between CFMoto and KTM including that it's possible to order a KTM through CFMoto. Now I don't knoiw if that means a wholly 100% KTM or some sort of pre-order CFMoto-KTM ADV bike, so don't farkin shoot me down on that!
No idea where this leaves the 650 twin cylinder in all of this - likely too early to tell.
The official CFMoto announcement has not been released in this regard so that's all that I can get at the moment.
More info
here